Owned and run by one individual; responsible for profits/losses

Owned and managed by two or more; share profits/losses

Legally separate from stockholders who own it; does not sell shares to public; private shareholders contributing to business

Stock is owned and traded by individuals and investors; stockholders not responsible for the company's debt; continues to exist even if its' stockholders or managers change; stockholders can easily sell their ownership through the stock market

When a private company or corporation raises investment capital by offering its' stock to the public for the first time

A type of security that signifies ownership in a corporation and represents a claim to a part of the company's profits/losses. Issed by companies to raise money for expanding, modernizing operations, etc.

Like a flea market where buyers and sellers come together; buy low/sell high

New York Stock Exchange located in New York City, formerly known at the American Stock Exchange (AMEX)

Second largest exchange in the world by market capitalization, behind the NYSE; located in New York City

The person who actually makes the trade for you; orders can be brokered through a person or electronically.

Risks funds by purchasing stocks with the hope that the investment will increase in value over time.

Shares of a company that do not guarantee a dividend and have more risk than preferred. Right to vote for board of directors as well as on issues that come before the board at annual meetings.

Shares of ownership of a company in which the shareholder is guaranteed a dividend if one is declared and whose shares are usually not as volatile as common stock; no voting rights.

Part of a company's profits (earnings) that is pays as money to stockholders.

A group of companies engaged in similar businesses.

An arrangement of characters (usually letters) representing a particular security on an exchange.

The chance of losing all or part of the value of an investment.

This measures the level of risk in investing in a stock (1 - move with the overall market, less than 1 less volatile, greater than 1 more volatile

The ratio of the stock's price per share to its' earnings per share.

Fixed income and preferred stocks; low risk

High unpredictable; can have incredible highs or devastating lows; high risk

Include growth stocks; particularly young companies with potential for growth

IOU for a loan; company is borrowing money from you at a rate of interest; investment grade bonds are considered safe

A collection of stocks, bonds, and other securities owned by a group of investors and managed by a professional investment advisory firm.